Manufacturing Indicators Show Marked Improvement

January 17, 2002

For release: January 17, 2002
Contact: Kathy Woodbury, (215) 574-4119

The Federal Reserve Bank of Philadelphia today released
its Business Outlook Survey for January. For the
first time in over a year, responses from manufacturing
firms indicate an increase in activity. However, employment
is still reported to be in decline. In this month's special
question, participants were asked to describe their employment
plans for this year.

"Manufacturers in the region reported growth in their business
this month. For the first time in over a year, more firms
reported increases in general activity, new orders, and
shipments than reported decreases. One month's increase
in activity does not guarantee a sustained improvement in
manufacturing. But the firms in the survey are more optimistic
about manufacturing growth over the next six months than
they were last month."

This survey, which was started in 1968, gathers information
on the manufacturing industry in the Third Federal Reserve
District covering eastern Pennsylvania, southern New Jersey,
and Delaware. Participation in the survey is limited to
manufacturing firms with plants in the area with more than
100 employees. The survey asks about the current pace of
business in the participants' plants and their future expectations
of business.

To arrange an interview, please contact Kathy Woodbury,
the Bank's assistant media representative, at (215) 574-4119.
The next Business Outlook Survey will be released
February 21, 2002, at noon and will be made available on
this web site and over PR Newswire. The aggregate historical
data series is also available at http://www.philadelphiafed.org/econ/bos/boshistory.html.

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